ArcelorMittal has been range-bound for more than four months, and a large trader doesn't see the stock breaking out anytime soon.
MT fell 0.98 percent yesterday to close at $15.10. Shares of the steel and mining company have been bouncing mostly between $14 and $16 since mid-May.
More than 31,000 MT options traded yesterday, compared to a daily average of fewer than 7,000. Much of that volume was in a March call spread.
optionMONSTER's systems show that a trader bought 13,000 March 17 calls for $0.89 against open interest of 13,468 while selling 13,000 March 16 calls for the bid price of $1.19. The latter volume was triple the open interest at that strike.
This could be a trader rolling down short calls from the 17 strike to the 16 strike, or it could be a credit spread. In either case the trader is betting that MT will remain below $16 through mid-March. (See our Education section)
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